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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   97-22.5 (-08.5)  
  FN 2.5% Coupon   103-31 (-02.5)  
  Support   1.086%  
  Resistance   0.807%  
  Wednesday, February 24, 2021

Treasury Yields Rise Ahead of Powell Testimony

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 1.3927, 5.11 bps increased from prior closing of 1.3416.
US stocks continued their downward trend this morning, with tech once again leading losses. Notably, Tesla Inc. saw early gains following share purchases by Cathie Wood's Ark Investment Management. Federal Reserve Chairman Jerome Powell is set to give the second part of his testimony to the House Financial Services Committee later today, although no new developments are expected outside of what was already conversed about in yesterday's hearing. In regard to asian markets, equities fell as Hong Kong announced its first stamp-duty increase in stocks since 1993. Raising the trading-tax from 0.10% to 0.13%, the new tax measure is intended to help Hong Kong residents weather the pandemic as the city itself saw its economy collapse, all the while stocks soared during the global market boom. Elsewhere, Bitcoin climbed towards $50,000, meanwhile, WTI crude increased by 1.70% and Gold declined by 1.10% towards $1,786.07 an ounce. On the economic front, MBA Mortgage Applications fell by 11.40% for the week ending February 19. After having fallen by 5.10% a week prior, today's figure reflects a nine month low in home purchases, with home purchases and refi's both down by 11.60% and 11.30%, respectively. Notably, refis accounted for 68.50% of all loans, down from 69.30% a week prior, all the while the thirty year fixed rate stood at 3.08%. New Home Sales reported higher than expected this morning, noting 923K sales in the month of January. Increasing at an annualized pace of 4.30%, the median sales price increased by 5.30% from a year prior. Today's figure also indicates that current home supply would take four months to exhaust, with new homes sold in January which had yet to be built jumping to a three month high. Reporting tomorrow are Durable Goods Orders, Initial Jobless Claims, and Annualized GDP QoQ, all expected at 1.00%, 825K, and 4.20%, respectively.
The curve has bear-flattened with UST 10-Year yield up 5.11 bps.
This Week's Events
  02/22 Chicago Fed Nat Activity Index 05:30 Jan 0.50 0.66 0.52 0.41  
  02/22 Leading Index 07:00 Jan 0.40% 0.50% 0.30% 0.40%  
  02/23 S&P CoreLogic CS 20-City YoY NSA 06:00 Dec 9.90% 10.10% 9.08% 9.20%  
  02/23 S&P CoreLogic CS 20-City MoM SA 06:00 Dec 1.25% 1.25% 1.42% 1.46%  
  02/23 Conf. Board Consumer Confidence 07:00 Feb 90.00 91.30 89.30 88.90  
  02/23 Richmond Fed Manufact. Index 07:00 Feb 15.00 14.00 14.00 -  
  02/24 MBA Mortgage Applications  04:00 19 Feb - -11.40% -5.10% -  
  02/25 Durable Goods Orders 05:30 Jan P 1.00% - 0.50% -  
  02/25 Initial Jobless Claims 05:30 20 Feb 825k - 861k -  
  02/25 Continuing Claims 05:30 13 Feb 4460k - 4494k -  
  02/25 GDP Price Index 05:30 4Q S 2.00% - 2.00% -  
  02/25 Bloomberg Consumer Comfort 06:45 21 Feb - - 45.80 -  
  02/26 PCE Deflator MoM 05:30 Jan 0.30% - 0.40% -  
  02/26 PCE Deflator YoY 05:30 Jan 1.40% - 1.30% -  
  02/26 U. of Mich. Sentiment 07:00 Feb F 76.50 - 76.20 -  
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  This information is provided solely for informational use and is not intended as an advice for trading or investment purposes in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.  
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